Why I sold to Americans by key investor

The London Stock Exchange's former largest shareholder has sold its shares to Nasdaq because it felt that it received as close to maximum value as it could possibly get.

Threadneedle Asset Management, which opened the latest chapter in the LSE saga by selling to the American electronic exchange on Tuesday afternoon, nearly quadrupled the return on its investment.

The fund manager originally bought in at £3 a share in December 2001 and sold at £11.75.

Michael Taylor, Threadneedle's head of equities, defended the sale, saying: "We sold a large strategic stake for a large strategic premium. The price was more than twice that offered by Macquarie in December and I am very happy with the price. We had to take a view of the various possible outcomes in the knowledge that we wouldn't have complete information at that point."

Mr Taylor led the negotiations with Nasdaq following its original, tentative, 950p-a-share approach. He was one of the few LSE investors to meet with Bob Griefeld, the Nasdaq chief executive, when he visited London last month.

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Initially Mr Greifeld asked Threadneedle to name a price for its 13.8pc LSE stake and for encouraging the LSE board to talk to him.

Mr Taylor told him that he would do neither and it is understood that Mr Greifeld and his advisors Greenhill & Co came back with subsequent price offers until agreement was reached at £11.75. Mr Taylor began the talks with Nasdaq on March 13, when he said that he was "willing to discuss proposals … with the long-term interest of our clients remaining our paramount concern".

He has been head of equities at Threadneedle since 2002, having joined in 1995 as a director.